Burberry, the British fashion brand that is known for its trench jackets and characteristic checkered print, said on Wednesday that it would lower to 1,700 jobs in an attempt to save costs because it tries to return after a period of poor sale in an ever -volatile luxury sector.
The job loss, which represent 18 percent of the worldwide work for work, are part of larger organizational changes that are expected to save the company £ 60 million (around $ 80 million). The measures come amid the global uncertainty that increased after President Trump had imposed rates on the best trading partners in America.
“The current macro -economic environment has become more uncertain in the light of geopolitical developments,” the company said in a statement.
The company announced the cost -saving strategy after reporting that in the 2025 financial year, which ended on March 29, an annual loss of a profit from the previous year. The operational losses were £ 3 million, or $ 4 million, a decrease of a £ 418 million, or $ 558 million, profit the year before. Turnover fell by 17 percent to £ 2.5 billion, or $ 3.4 billion.
Burberry has struggled in recent years after changes in the field of management and designer, a drive to increase the prices that have fallen flat with customers and the broader global delay of luxury consumption, especially in China, the largest overseas market.
The company said that the cost -saving efforts, in combination with earlier measures, can lead to planned savings of up to £ 100 million, or $ 133 million, by 2027. Most of the job losses will affect operating firms, but can also influence stores and factories.
Shares rose by no less than 10 percent on the news after the market in London was open.
The CEO of the company, Joshua Shulman, joined the Burberry of his American rival, coach, to lead a change. He said in a statement on Wednesday that he was “more optimistic than ever that the best days of Burberry are in front of us and that we will yield sustainable profitable growth over time”, but added that the last financial year had been a challenge.
Charlie Huggins, a manager at the investment company Wealth Club, noted that a decrease of 6 percent in the turnover of the same stores in the fourth quarter was “a clear improvement” and suggested that “the strategic plan to accommodate the brand, may get early traction.”
“But the tax year 2025 was still an Annus -Horribilis for Burberry,” he said. “Almost everything that could go wrong. Luxury consumers around the world have considerably tightened their belts when touching the entire luxury sector. But Burberry has seen more impact than most.”
Other groups that have noticed income are recently LVMH, owner of Louis Vuitton and Dior, and Kering, which owns brands such as Gucci and Saint Laurent.
